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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 6
Use the following news clip to work the Problem.
Is Fiscal Stimulus Necessary
China's economy is slowing from its normal 9 percent or higher rate to just below 9 percent. The source of the slowdown is the global economic slowdown that is restricting exports growth and the government's deliberate decision to discourage unproductive investment. The situation now is not like that in 2008 when real GDP growth dropped from 9 percent to 6.8 percent and fiscal stimulus does not appear to be urgently needed.
Would you expect automatic stabilizers to be operating in 2012 and if so, what effects might they have?
Is Fiscal Stimulus Necessary
China's economy is slowing from its normal 9 percent or higher rate to just below 9 percent. The source of the slowdown is the global economic slowdown that is restricting exports growth and the government's deliberate decision to discourage unproductive investment. The situation now is not like that in 2008 when real GDP growth dropped from 9 percent to 6.8 percent and fiscal stimulus does not appear to be urgently needed.
Would you expect automatic stabilizers to be operating in 2012 and if so, what effects might they have?
Explanation
Verified
Verified
Fiscal stimulus:
During 2012, the growt...
Macroeconomics 11th Edition by Michael Parkin
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